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[MUSIC PLAYING]

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NARRATOR: First
into the Shark Tank

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is Aaron Krause, who
believes his product will

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make everyday cleaning easier.

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AARON KRAUSE: Hi, Sharks.

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I'm Aaron Krause
from Philadelphia.

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And I'm known as the
daddy of the Scrub

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Daddy, the cutest but
most high tech scrubbing

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tool in the world.

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Today, I'm seeking a $100,000
investment in exchange for 10%

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equity in the Scrub
Daddy business.

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It's the greatest kitchen
scrubbing tool you ever used.

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Because scrub that a
completely changes its texture

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by just adjusting your
water temperature.

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Let me show you how that works.

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Here, I've got some hot water.

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Here, I've got some cold water.

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When I immerse the Scrub Daddy
in the hot and cold water,

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a complete
transformation occurs.

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Now, to show you that,
I've got 10 pounds weights.

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Here, under the 10 pounds,
it's soft and compressible.

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And that's like a sponge.

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That's for your gentle
scrubbing applications.

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But here, check that out.

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It's hard and firm.

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That's going to be for heavy
duty scrubbing applications.

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We burned on brown and
gravy, tomato sauce, cheese,

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and mustard onto a glass stove
top, and a stainless steel pan.

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I'm going to take
the Scrub Daddy.

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And you're going
to see it's just

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going to attack right into
that burn on mess, scrubbing it

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right off.

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And remember, I'm
just using water here.

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There's no chemicals at all.

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And it's going to cut
right through that.

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It won't scratch any
of your surfaces,

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but it will clean
them beautifully.

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Now, Scrub Daddy is not
really smiling anymore.

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So I'm going to put them
here in the warm water.

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And in just a couple
seconds, voila!

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He's back to bright, fresh
and clean every time.

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Sharks, that's not just
another smiling face.

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You put it on your hand.

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You can get to the bottom and
clean the sides in one move.

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And that smiling mouth that
clean spoons, knives, forks,

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spatulas, even
large serving spoons

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on both sides at the same time.

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Sharks, with your
help, Scrub Daddy

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will be scrubbing and smiling
in every kitchen in the world.

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MARC CUBAN: Woo.

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DAYMOND JOHN: Wow.

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LORI GREINER: Wow.

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KEVIN O'LEARY: Scrub Daddy.

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DAYMOND JOHN: I never
witnessed a live infomercial.

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ROBERT HERJAVEC:
That was fantastic.

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DAYMOND JOHN: That
was incredible.

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Do you have samples?

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AARON KRAUSE: I do.

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LORI GREINER: Where are
you selling this now?

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ROBERT HERJAVEC: Thank you.

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AARON KRAUSE:
Well, currently, we

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have it in five supermarkets
in the Philadelphia area.

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We also sell it on our website.

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I've been on QVC three times
over about three months.

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ROBERT HERJAVEC:
And how'd it go?

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AARON KRAUSE: Fantastic.

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They've invited me
back over and over.

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And every time I
go on, they reorder

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30% more than the last time.

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KEVIN O'LEARY: So
Scrub Daddy is humming.

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ROBERT HERJAVEC: And what were
your total sales, QVC wholesale?

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AARON KRAUSE: Just north of
$100,000, only in four months.

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LORI GREINER: Do you
have a patent on this?

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AARON KRAUSE: I
actually have a patent.

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I have two more pending.

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We have the trademark.

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We have domain names.

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KEVIN O'LEARY: OK, Aaron, what
do you need the $100,000 for?

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AARON KRAUSE: What I
want to do is set up

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an independent
manufacturing facility

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with automated equipment.

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KEVIN O'LEARY: Why do you need
to go into your own facility?

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AARON KRAUSE: The
biggest problem

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is I'm on their time schedule.

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KEVIN O'LEARY: Are you saying
that you could be making more

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revenue, if you were 24/7
making Scrub Daddies?

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AARON KRAUSE: The
way QVC is going,

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and we're just about to launch
in a whole bunch of stores,

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we're going to
need that capacity.

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And I have 18 years experience
running a manufacturing

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plant that runs 24 hours a day.

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I know exactly what
I need to do to make

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this thing really efficient.

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And I'm looking to get a
strategic partner who can open

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this up into the retail stores.

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I'm only in five supermarkets.

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That's it.

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LORI GREINER: What's your cost?

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AARON KRAUSE: The cost
to make one is about $1.

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DAYMOND JOHN: What are
you selling them for?

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AARON KRAUSE: About $2.80.

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DAYMOND JOHN: Wholesale?

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AARON KRAUSE: Wholesale.

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This needs to be in every
supermarket, drugstore,

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Walgreens.

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KEVIN O'LEARY:
That's so expensive.

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Mrs. Slabinski goes to the store
and picks this off the shelf

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and says, hey, it's a piece of
foam with a smiley face on it.

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It costs $0.02 to make in China.

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That's what she's thinking.

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There's a brillo pad, which is
traditional product, is what,

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20%--

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AARON KRAUSE:
You're comparing it

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to the lowest end
of the lowest end.

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You take it up to
the highest end.

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Talk about the ones like
Dobie pads or other pads out

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there that are brand names.

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ROBERT HERJAVEC:
Scrub Daddy, I think

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you've done a great job today,
but I don't know if it's

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going to work in retail.

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I don't buy into that vision.

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Just in the packaging,
I just don't

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know if I see the difference.

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AARON KRAUSE: Rob, it
doesn't sell on a shelf.

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Correct.

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But if you put it in display
shippers, which we built

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these beautiful cardboard
display shippers,

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and it communicates the
message to everyone.

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DAYMOND JOHN: You're
talking end caps.

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You're going to have to
pay for those things.

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LORI GREINER: It's hard to get
them, even if you pay for them.

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ROBERT HERJAVEC:
Great job today.

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But I don't see
the retail vision.

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I'm out.

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AARON KRAUSE: I understand.

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MARC CUBAN: I like the product.

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I think you're
doing great things.

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You're doing the
exact right way.

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But when I hear QVC,
no disrespect to Lori,

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when the company sales are
completely dependent on QVC,

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that's a disaster
waiting to happen.

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AARON KRAUSE: I've got 3,000
stores lined up right now.

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We're going to be
in 3,000 stores.

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MARC CUBAN: I understand.

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Put aside QVC, you're still
a one-product company.

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AARON KRAUSE: Not for long.

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We've got Scrub Mommy.

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We've got Scrub Baby
for doing baby bottles.

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I've got a holder that
sits on your sink.

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And it's got drains in the legs.

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You don't understand
who you're dealing with.

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MARC CUBAN: You're right.

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I'm not doubting
the scrub market.

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I'm not doubting you
are the Scrub Daddy.

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But I'm not a scrub pimp.

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So I'm out.

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AARON KRAUSE: That hurts, Marc.

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I wanted to work
with you so bad.

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LORI GREINER: Marc, QVC does
over $8 billion in sales a year.

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And I've done over
$500 million myself.

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MARC CUBAN: Yes, you have.

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And you rotate products
in and out of there.

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And once those products
are out, they're out.

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KEVIN O'LEARY: How
about this deal?

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$100,000 for 50%?

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[SUSPENSEFUL MUSIC]

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[LAUGHS]

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Let's start the bidding there.

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AARON KRAUSE: All right.

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You're out.

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DAYMOND JOHN: I'm somebody
who can paint any picture.

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And I think that Lori is a
vicious, backstabbing shark.

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MARC CUBAN: That's all true.

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DAYMOND JOHN: But sometimes
I love her as well,

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because she is the QVC queen.

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So I'm offering $50,000 for 15%,
if you can raise the rest from

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Lori, and if she wants
to do business with me.

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LORI GREINER: Well,
here's the thing.

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You've heard me say before,
I can tell instantly

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if it's a hero or a zero.

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And I think what you've
got here is a hero.

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No offense, Daymond.

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I don't need you.

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DAYMOND JOHN: You don't.

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LORI GREINER: My offer
is $100,000 for 30%.

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I will get you into
infomercial right away.

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And I'm pretty confident
that we could get this

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into all retail stores
across the country

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within literally weeks.

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[SUSPENSEFUL MUSIC]

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KEVIN O'LEARY: I'll tell
you what I'll do for you.

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I'll give you $100,000.

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We'll never agree on what
percentage I should get.

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I'm going to change
the model completely.

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You're going to keep
the whole company.

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But I want to be your financier.

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I want you to give me $0.50
on every unit sold until I get

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the $100k back.

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Then it drops to
$0.10 in perpetuity.

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MARC CUBAN: He just
wants to increase

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your cost of goods sold by 50%.

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Nothing, right?

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KEVIN O'LEARY: Why give
up 30% of your company?

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DAYMOND JOHN: Just to
sweeten the pot a little bit,

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I'm going to give
you $150,000 for 25%.

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ROBERT HERJAVEC: Whoa.

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KEVIN O'LEARY: What
are you going to do?

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LORI GREINER: I'm changing
my offer, actually.

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$100,000, but for 25% The
experience, the connections,

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everything that I have,
it will be successful.

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I am partnered with
the best of them.

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KEVIN O'LEARY: Why give up
any part of Scrub Daddy?

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Think of the relationship
you have with this sponge.

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[LAUGHS]

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You're selling this thing out.

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And it's going to cry.

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It won't be happy anymore.

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LORI GREINER: QVC, infomercial,
and into every single retailer

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worldwide.

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That's the power of
what we can do, just

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by one infomercial spot.

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I can get you there.

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KEVIN O'LEARY: He
knows that already.

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LORI GREINER: I'm not done.

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DAYMOND JOHN: We've
heard that already.

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We've heard that already.

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KEVIN O'LEARY: I want the
answer to one question.

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All right.

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Do you think 25% of the equity
in your company is worth more

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or less than $0.10 a
unit in perpetuity?

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LORI GREINER: And he's all talk.

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Where is he going to take you?

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KEVIN O'LEARY: It
doesn't matter.

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LORI GREINER: It does matter.

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Connections are everything.

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KEVIN O'LEARY: You keep
25% of this business, which

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00:08:32,250 --> 00:08:34,799
may sell 10 million of
these, and you keep it

246
00:08:34,799 --> 00:08:35,632
all for yourself.

247
00:08:35,632 --> 00:08:37,799
LORI GREINER: But you're
going to be keeping nothing

248
00:08:37,799 --> 00:08:39,400
because he doesn't know
how to get this out.

249
00:08:39,400 --> 00:08:40,830
KEVIN O'LEARY: You
haven't had any success.

250
00:08:40,830 --> 00:08:41,497
You're an idiot.

251
00:08:41,497 --> 00:08:42,687
You don't know what to do.

252
00:08:42,687 --> 00:08:44,020
AARON KRAUSE: I know what to do.

253
00:08:44,020 --> 00:08:44,978
KEVIN O'LEARY: Exactly.

254
00:08:44,978 --> 00:08:48,150
DAYMOND JOHN: I just did a half
a billion deal with Walmart.

255
00:08:48,150 --> 00:08:49,555
Half a billion.

256
00:08:49,555 --> 00:08:51,430
LORI GREINER: But that
doesn't mean anything.

257
00:08:51,430 --> 00:08:52,300
What product is it?

258
00:08:52,300 --> 00:08:52,620
AARON KRAUSE: OK.

259
00:08:52,620 --> 00:08:53,670
I'd like to review--

260
00:08:53,670 --> 00:08:54,878
KEVIN O'LEARY: Wait a second.

261
00:08:54,878 --> 00:08:56,140
Let the sponge speak.

262
00:08:56,140 --> 00:08:57,388
And it's saying--

263
00:08:57,388 --> 00:08:58,180
LORI GREINER: Lori.

264
00:08:58,180 --> 00:08:59,760
KEVIN O'LEARY: --go with Kevin.

265
00:08:59,760 --> 00:09:01,270
ROBERT HERJAVEC: Aaron,
they're like children up here.

266
00:09:01,270 --> 00:09:01,930
It's awful.

267
00:09:01,930 --> 00:09:02,730
KEVIN O'LEARY: Let's recap.

268
00:09:02,730 --> 00:09:04,147
AARON KRAUSE: Let's
recap, please.

269
00:09:04,147 --> 00:09:07,770
ROBERT HERJAVEC: $150,000
for 25% from Daymond.

270
00:09:07,770 --> 00:09:08,730
Kevin?

271
00:09:08,730 --> 00:09:12,710
KEVIN O'LEARY: $100,000 for
no percent and a tiny tithe

272
00:09:12,710 --> 00:09:13,890
of $0.10.

273
00:09:13,890 --> 00:09:15,210
You keep all the equity.

274
00:09:15,210 --> 00:09:20,790
ROBERT HERJAVEC: Lori is
offering you $100,000 for 25%.

275
00:09:20,790 --> 00:09:22,890
LORI GREINER: I offered
$150,000 last time.

276
00:09:22,890 --> 00:09:23,240
ROBERT HERJAVEC: Whoa.

277
00:09:23,240 --> 00:09:23,720
Hang on.

278
00:09:23,720 --> 00:09:24,110
KEVIN O'LEARY: I
didn't hear that.

279
00:09:24,110 --> 00:09:24,890
DAYMOND JOHN: You
said a hundred, Lori.

280
00:09:24,890 --> 00:09:27,090
LORI GREINER: Oh, well,
I changed my mind.

281
00:09:27,090 --> 00:09:30,410
$150,000 for 25%.

282
00:09:30,410 --> 00:09:33,987
I'll make you a
millionaire within a year.

283
00:09:33,987 --> 00:09:35,820
DAYMOND JOHN: So mine
just went to $175,000.

284
00:09:35,820 --> 00:09:38,180
KEVIN O'LEARY: Whoa!

285
00:09:38,180 --> 00:09:39,600
AARON KRAUSE: He's
up to $175,000?

286
00:09:39,600 --> 00:09:40,790
DAYMOND JOHN: Yeah.

287
00:09:40,790 --> 00:09:42,590
LORI GREINER: Mine
just went to two.

288
00:09:42,590 --> 00:09:43,423
KEVIN O'LEARY: Whoa!

289
00:09:43,423 --> 00:09:45,910
[SUSPENSEFUL MUSIC]

290
00:09:45,910 --> 00:09:48,650


291
00:09:48,650 --> 00:09:52,400
DAYMOND JOHN: The good news
is, I just made you an extra

292
00:09:52,400 --> 00:09:54,380
$100,000.

293
00:09:54,380 --> 00:09:55,290
I'm out.

294
00:09:55,290 --> 00:09:58,182
I wanted to stick it to her.

295
00:09:58,182 --> 00:09:59,015
KEVIN O'LEARY: Ouch.

296
00:09:59,015 --> 00:10:03,020


297
00:10:03,020 --> 00:10:05,360
ROBERT HERJAVEC: Wow.

298
00:10:05,360 --> 00:10:08,600
KEVIN O'LEARY: I'll drop the
$0.50 down to $0.25 until

299
00:10:08,600 --> 00:10:10,200
the $100k is recovered.

300
00:10:10,200 --> 00:10:13,840
And then go to $0.10.

301
00:10:13,840 --> 00:10:17,470
AARON KRAUSE: Will
you go to $0.05?

302
00:10:17,470 --> 00:10:19,697
KEVIN O'LEARY: 7 and
1/2, it's a deal.

303
00:10:19,697 --> 00:10:20,530
ROBERT HERJAVEC: OK.

304
00:10:20,530 --> 00:10:24,340
Aaron, you've got two
offers on the table.

305
00:10:24,340 --> 00:10:26,260
What are you going to do?

306
00:10:26,260 --> 00:10:28,900
DAYMOND JOHN: You have to
make up your mind right now.

307
00:10:28,900 --> 00:10:30,700
LORI GREINER: You
don't see the benefit

308
00:10:30,700 --> 00:10:32,120
of having me as a partner.

309
00:10:32,120 --> 00:10:33,080
AARON KRAUSE: I never said that.

310
00:10:33,080 --> 00:10:34,455
LORI GREINER: You
need to tell me

311
00:10:34,455 --> 00:10:39,197
right now, whether you're going
with me or not, or I'm out.

312
00:10:39,197 --> 00:10:40,530
KEVIN O'LEARY: I'm here for you.

313
00:10:40,530 --> 00:10:43,210


314
00:10:43,210 --> 00:10:45,550
AARON KRAUSE: I think
your deal is awesome.

315
00:10:45,550 --> 00:10:47,448
The equity amount is too much.

316
00:10:47,448 --> 00:10:48,990
Would you consider
coming down to 20?

317
00:10:48,990 --> 00:10:55,360


318
00:10:55,360 --> 00:10:57,100
LORI GREINER: You
know what, I will.

319
00:10:57,100 --> 00:10:57,793
I'll go to 20.

320
00:10:57,793 --> 00:10:58,960
AARON KRAUSE: We got a deal.

321
00:10:58,960 --> 00:10:59,600
LORI GREINER: We got a deal.

322
00:10:59,600 --> 00:11:00,725
ROBERT HERJAVEC: All right.

323
00:11:00,725 --> 00:11:01,600
LORI GREINER: Good.

324
00:11:01,600 --> 00:11:02,870
MARC CUBAN: Way to go, Aaron!

325
00:11:02,870 --> 00:11:04,440
ROBERT HERJAVEC: Woo!

326
00:11:04,440 --> 00:11:05,690
LORI GREINER: Congratulations.

327
00:11:05,690 --> 00:11:06,815
AARON KRAUSE: Thanks, Lori.

328
00:11:06,815 --> 00:11:07,453
I'm so excited.

329
00:11:07,453 --> 00:11:08,870
KEVIN O'LEARY: You
are dead to me.

330
00:11:08,870 --> 00:11:10,570
And the sponge is dead.

331
00:11:10,570 --> 00:11:12,803
AARON KRAUSE: Thanks, guys.

332
00:11:12,803 --> 00:11:14,345
KEVIN O'LEARY: Scrub
Daddy, you suck!

333
00:11:14,345 --> 00:11:17,640


334
00:11:17,640 --> 00:11:18,890
AARON KRAUSE: That is awesome.

335
00:11:18,890 --> 00:11:19,930
We got a deal.

336
00:11:19,930 --> 00:11:22,180
Lori, it's a dream come true.

337
00:11:22,180 --> 00:11:23,800
It's absolutely a
dream come true.

338
00:11:23,800 --> 00:11:25,925
DAYMOND JOHN: I don't care
how much money you have.

339
00:11:25,925 --> 00:11:28,240
I'm so satisfied to know
that you lost an extra 100.

340
00:11:28,240 --> 00:11:29,323
I know you'll get me back.

341
00:11:29,323 --> 00:11:31,560
LORI GREINER: It's going to
be a gangbuster, huge hit

342
00:11:31,560 --> 00:11:32,495
in infomercial.

343
00:11:32,495 --> 00:11:33,870
ROBERT HERJAVEC:
Good deal, Lori.

344
00:11:33,870 --> 00:11:35,203
LORI GREINER: It's a great deal.

345
00:11:35,203 --> 00:11:38,580


346
00:11:38,580 --> 00:11:40,110
NARRATOR: In season
four, we watched

347
00:11:40,110 --> 00:11:41,880
Aaron Krause make
a deal with Lori

348
00:11:41,880 --> 00:11:44,413
Greiner for his innovative
sponge, the Scrub Daddy.

349
00:11:44,413 --> 00:11:45,580
LORI GREINER: I'll go to 20.

350
00:11:45,580 --> 00:11:46,180
AARON KRAUSE: We got a deal.

351
00:11:46,180 --> 00:11:48,160
NARRATOR: Let's see
what he's up to now.

352
00:11:48,160 --> 00:11:49,827
AARON KRAUSE: When I
pitched the sharks,

353
00:11:49,827 --> 00:11:53,200
we only had $100,000 in
retail sales and one product.

354
00:11:53,200 --> 00:11:59,950
And now, in 10 years, the
company has 273 employees.

355
00:11:59,950 --> 00:12:01,600
We have 160 products.

356
00:12:01,600 --> 00:12:05,200
And we're sold in
257,000 retail locations.

357
00:12:05,200 --> 00:12:07,800
Scrub Daddy is one of the
top five grossing companies

358
00:12:07,800 --> 00:12:12,210
in Shark Tank history,
doing over $670 million

359
00:12:12,210 --> 00:12:13,400
in retail sales.

360
00:12:13,400 --> 00:12:16,105
Before Shark Tank, there was
only one manufacturing facility,

361
00:12:16,105 --> 00:12:16,980
which was in Germany.

362
00:12:16,980 --> 00:12:18,680
And now, we moved
our manufacturing

363
00:12:18,680 --> 00:12:21,120
into Chattanooga,
Tennessee and New Jersey.

364
00:12:21,120 --> 00:12:22,820
We're made in the United States.

365
00:12:22,820 --> 00:12:26,220
We designed our new headquarters
to be totally solar powered.

366
00:12:26,220 --> 00:12:28,440
In fact, we have so
much excess electricity,

367
00:12:28,440 --> 00:12:31,020
we powered homes in the
surrounding neighborhood.

368
00:12:31,020 --> 00:12:31,950
LORI GREINER: Hey.

369
00:12:31,950 --> 00:12:32,960
AARON KRAUSE: Welcome.

370
00:12:32,960 --> 00:12:34,520
Welcome to Smile Central.

371
00:12:34,520 --> 00:12:37,580
In another strategic move,
we've developed a relationship

372
00:12:37,580 --> 00:12:40,910
with Unilever, the largest
producer of soap products

373
00:12:40,910 --> 00:12:41,820
in the world.

374
00:12:41,820 --> 00:12:43,850
They will be able
to expand our brand

375
00:12:43,850 --> 00:12:46,950
reach to countries, where people
have never heard of Scrub Daddy.

376
00:12:46,950 --> 00:12:49,533
KEWAL SANGHVI: We're extremely
excited to reach more consumers

377
00:12:49,533 --> 00:12:52,080
globally and make cleaning
a fun activity worldwide.

378
00:12:52,080 --> 00:12:54,330
LORI GREINER: Everybody that
comes into the Shark Tank

379
00:12:54,330 --> 00:12:55,742
dreams of global domination.

380
00:12:55,742 --> 00:12:57,200
And after signing
this partnership,

381
00:12:57,200 --> 00:12:58,760
you know what we just got?

382
00:12:58,760 --> 00:13:00,528
AARON AND LORI:
Global domination.

383
00:13:00,528 --> 00:13:01,320
AARON KRAUSE: Yeah.

384
00:13:01,320 --> 00:13:02,630
You got it.

385
00:13:02,630 --> 00:13:04,850
LORI GREINER: The last
10 years has taught me

386
00:13:04,850 --> 00:13:08,430
so much about Aaron as a
person, the creativity,

387
00:13:08,430 --> 00:13:09,960
the caring about the planet.

388
00:13:09,960 --> 00:13:12,830
He is the consummate
inventor, entrepreneur,

389
00:13:12,830 --> 00:13:15,200
and every investor's dream.

390
00:13:15,200 --> 00:13:16,860
It's our 10-year anniversary.

391
00:13:16,860 --> 00:13:18,610
AARON KRAUSE: It would
be difficult to put

392
00:13:18,610 --> 00:13:22,730
into words, what being on Shark
Tank has done for my life,

393
00:13:22,730 --> 00:13:25,160
and the hundreds of
employees that we have now.

394
00:13:25,160 --> 00:13:28,090
I go around the
globe and represent

395
00:13:28,090 --> 00:13:30,490
what Shark Tank means
to entrepreneurs

396
00:13:30,490 --> 00:13:32,450
and to the spirit of business.

397
00:13:32,450 --> 00:13:35,930
This smiley face sponge has
not just changed my life,

398
00:13:35,930 --> 00:13:38,950
but people all over the
world are smiling now

399
00:13:38,950 --> 00:13:42,310
as they use the
Scrub Daddy product.

400
00:13:42,310 --> 00:13:44,460
ALL: Scrub Daddy!

401
00:13:44,460 --> 00:14:16,000